Of 203 insurance executives recently surveyed, 67 percent are currently addressing core systems modernization, and 54 percent said the best practice for managing core systems modernization is to find a trusted partner with an integrated solution platform.
SAP AG informally questioned 203 insurers at IASA’s Annual Conference earlier this month and concluded that aging legacy systems continue to be top-of-mind. As for other best practices, 23 percent of the respondents would consider preserving as much of the legacy systems as possible, and another 23 percent would prefer replacing the legacy systems with an in-house build.
Analytics is the upgrade at the top of their list. Forty-three percent of the respondents said advanced analytics for greater insight into the business, including predictive and fraud management, are essential; 22 percent said mobile workflows and apps for employees, agents and customers; and 19 percent said delivering a single view of the customer and creating a great customer experience at every touch point across the policy, billing and claims cycle.
Thirty-eight percent of respondents said their systems are completely outdated, poorly integrated and cannot be modernized incrementally, while 29 percent indicated an inability to bring the IT and business teams together to fully understand the problem and the opportunity.
“As the insurance industry becomes increasingly commoditized, speed and agility serve as a key competitive advantage for insurers as they look to differentiate themselves and capture more market share,” said Robert Cummings, global head of insurance business unit, SAP AG. “Collaboration between IT and business teams along with a trusted enterprise partner that can seamlessly upgrade and modernize core systems is crucial to reach new markets and manage the entire customer life cycle.”
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